Question: In its December 31, 2019 fnancial statements, Blue Ltd. reported retained earnings of $523,000. During 2020, Blue reported net income after tax of $74,500

In its December 31, 2019 financial statements, Blue Ltd. reported retained earnings of $523,000. During 2020, Blue reported n

In its December 31, 2019 fnancial statements, Blue Ltd. reported retained earnings of $523,000. During 2020, Blue reported net income after tax of $74,500 and paid dividends of $4,900. Also, during 2020, Blue discovered that rent expense in 2019 was understated by $20,700. Rent expense was recorded properly for 2020. Blue was subject to a 20% income tax rate for all affected years. Assuming that Blue reports under ASPE, prepare the December 31, 2020 statement of retained earnings. Blue Ltd. Statement of Retained Earnings $ $

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